3/24/2006 Public Utilities Retreat - Part A COUNCIL PRESENT: Musselwhite, Hamrick, Figueras, Bruner, Wangemann STAFF PRESENT: Shuler, Merritt, Randall, Anderson, Collins, Yari OTHERS PRESENT: Jordan, Jones & Goulding Representatives Bobby Sills, Brendan Thompson, Ben Williams Friday, March 24, 2006 Introductions Public Utilities Director Kelly Randall made the introductions and began discussion by stating the department’s projected capital improvement budget for the current fiscal year was $45 million which was a challenge for staff. He also noted approximately $205 million had been spent over the last five years. Growth Indicators Finance and Administration Division Manager Tina Wetherford discussed the growth factors. Highlights are noted as follows:  The number of customers increased by an average of 3% per year.  There were 1,896 water meters sold in 2006.  The department added 314 wastewater taps in 2006. The Mayor suggested a review of residential wastewater customers. There was discussion about the two largest government customers, i.e., the Jail Detention Center and the Governmental Housing Units. Flow Projections Public Utilities Director Kelly Randall discussed water pumped to the system. He stated water conservation had narrowed the gap between maximum day and annual average day usage. He also discussed several water conservation implementation items that need to be in place by January, 2007. Mr. Randall discussed the growth curve ranges (low, medium, and high). When considering the low growth range, capacity updates would be needed in 2014 at which time the Lakeside Water Treatment Plant was expected to double in size. He called attention to the Cedar Creek water supply from the County indicating it may be desirable to pump 11 MGD from Cedar Creek to the Riverside Water Treatment Plan. This would allow the Lakeside Water Treatment to process an additional 11 MGD. There was discussion about the difficulty in preparing wastewater projections. They reviewed the development approval process along with pending and anticipated layout of projects to calculate future flows. The graphical information on wastewater flow through 2030 revealed a 33.8 MGD projection. Environmental and Treatment Manager Steve Payne discussed the status of the permits for the Flat Creek and Linwood Plants. Council Member Figueras confirmed that the necessary ordinances required by Metropolitan North Georgia Water Planning District had been adopted. Sub-metering was noted as an area of concern because they were difficult to install and they increase cost. Mayor Musselwhite indicated he had sub-metered his units and was pleased with the outcome. He stated this allowed tenants to be billed individually, which, in turn, created an incentive for reporting leaks. Mr. Payne indicated an embayment study was needed for the Flat Creek Plant. He reported staff was trying to remove some temporary temperature monitoring requirements from the Linwood permit and indicated new permits would be required by December, 2007. As a side note, it was reported that Pilgrim Pride may be building a recycle unit to reduce flows by 50%. Capital Improvements Plan (CIP) Discussion Utilities Engineer and Planning Division Manager Mak Yari reviewed the annual cost as well as the percentage increases in the CIP. Upon inquiry from Mayor Musselwhite, he indicated projects were selected based on the most current information. Public Utilities Director Kelly Randall individually discussed the following projects noting the CIP could be amended. Athens Highway Project: This project could be completed in three phases at a total cost of $9.7 million. The City Manager noted the issue to consider was how much residential should be added to the system. Balus Creek Pump Station: This project will cost $8.5 million. Calvary Church Road Pump Station: This project would provide 400,000 gallons per day to serve the potential industrial park detention center and the Public Works property in addition to the new jail. Dawsonville Highway Pump Station: This project serves the area across the bridge up to “the Round House”. Howard Road Sewerage Expansion: This project will improve service in the I-985 Exit 24 area. There were three scenarios for Council to consider. There was discussion about the water and sewer capacity requested by the developer and how these commitments affected the planning process. The City Manager asked if the project would generate the growth, i.e., revenue needed to make it viable. It was noted that phasing the project was impractical. Thompson Bridge Pump Station: Additional capacity was needed to serve Fieldale (Murrayville) and other smaller developments. It was anticipated Fieldale would need another 750,000 gallons over the next 5 years. Mulberry Creek Regional Pump Station: The project will provide sewer service to Old Winder Highway. There was concern Hall County may be encroaching into Braselton’s service area. The Mayor suggested that the pros and cons of the City’s involvement in the project be shared with Council. There was discussion indicating Hall County wanted to be the owner while Gainesville operated and maintained the station. The City Manager did not see significant benefit to the City and expressed a desire to move cautiously while creating a partnership.